Ballard Power Systems Inc. (Vancouver, BC, Canada) reported its financial results and achievements for the quarter ended June 30, 2005. Ballard's net loss for the quarter was $29.5 million, or $0.24 per share, compared with a net loss of $30.6 million, or $0.26 per share, for the same period in 2004. The primary reasons for the lower loss in 2005 are a $4.7 million decline in depreciation and amortization, a $2.6 million decline in research and development expenses, a $2.2 million favourable swing in foreign exchange, and a $0.8 million improvement in investment and other income. This was partly offset by a $5.5 million decline in engineering service revenue and a $3.6 million decline in product margins.
Ballard's revenue for the quarter was $9.0 million, compared to $21.2 million for the same period in 2004. This decrease includes a $6.8 million, or 44-percent, decrease in product revenue and a $5.5 million, or 95-percent, decrease in engineering service and other revenue. The decrease in product revenues primarily relates to lower deliveries of its light-duty fuel cell engines to Ballard's Alliance partners, lower light-duty fuel cell sales to other automotive customers, and the completion of shipments of heavy-duty fuel cell bus engines in 2004.
Cash used by operations and capital expenditures for the quarter was $28.7 million, compared to $22.5 million for the same period in 2004. The increase is primarily due to lower revenues and a higher increase in working capital requirements. Ballard's cash position at the end of the second quarter stood at $231 million.
